Tax Credit Regulatory Agreement

The Internal Revenue Service ensures that owners comply with LIHTC laws, rules and regulations. According to New York State regulations, which are located at 20 NYCRR No. 2040.5 (a), “the public control regulatory agreement must be ready in the landlord`s rental office and credited in all marketing materials.” The owner must keep the building as low-income housing for at least 30 years. During the first fifteen years of the regulatory agreement, the owner of the agency responsible for monitoring compliance with the New York State Qualified Allowance Plan must certify compliance with the rules and regulations each year. The last fifteen years are an extended use period and do not have the same rules to certify compliance. The lessor must attach the required low-income regulatory settlement agreement to all LIHTC credit leases. The rent to be charged to the tenant must be disclosed before the signing of the tenancy agreement. Landlords must certify the tenant`s income each year by requesting a copy of the tenant`s federal tax return, the W-2 tax form or third-party proof from the tenant`s employer or government authority. A landlord can only evict a tenant for a good reason and a lessor cannot refuse to renew a tenancy agreement, except for good reason. (The landlord is considered a “state actor” and tenants are therefore entitled to due process in all the lessor`s efforts to evacuate or not renew the tenancy agreement.) A landlord should not attempt revenge on a tenant who has informed New York State Housing and Community Renewal of an alleged violation of the regulatory agreement.

The owner must not refuse to rent to an owner of Section 8 Housing Choice Vouchers based on his status as a coupon holder. There is no federal restriction on renting to people in the United States without the necessary paperwork (although the people who run the business can set their own policy). Determine whether LIHTC applies to construction: Most LIHTC projects are available on this site: However, some real estate properties receive tax credits through their local industrial development agencies (IDA). You can send an information right form to IDA to obtain a list of the LIHTC projects they fund. Low-wage tax credits (THS) are federal tax credits to encourage the construction or modernization of low-cost housing. Ninety per cent of new low-income housing units built after 1990 were funded by LIHTC. Each state receives tax credits based on population. New York State is implementing its program through the New York State Research and Research Agency (UNHCR). The New York State Housing Finance Agency (HFA) has a Qualified Allocation Plan that sets out the rules for allocating tax credits.

LIHTC beneficiaries must enter into a regulatory agreement with NYS HFA. The regulatory agreement has certain conditions for premises, including tenant rights and protection. DHCD reserves the right to collect an appropriate monitoring fee to perform compliance monitoring functions after the tax credit compliance period (as defined in Section 42 of the Internal Income Code) for the remainder of the duration of the tax credit contract and the declaration of the restrictive pact. Maximum permitted rents: these vary depending on the number of people allowed to live there by the landlord, either the “20-50” rule or the “40-60” rule. Under the 20-50 rule, at least 20% of building units must be “limited rent” and be occupied by households with incomes below or below 50% of median surface income (AMI). Under the 40-60 rule, at least 40% of building units must be “limited rent” and be occupied by households with incomes below or below 60% of the MAI. In addition, in this case, the California Tax Credit Allocation Committee`s current compliance requirements and the applicable requirements of the Credit Regulatory Agreement